FEASIBILITY ANALYSIS: CASE STUDY OF "THE REPUBLIC PLAZA"

Abstract

The "Republic Plaza" project is being launched against a background of a depressed property market which is on the brink of a recovery. Hence, it could be said that the development of this project is, to some extent, counter-cyclical to the prevailing market situation. The purpose of this study is to investigate factors affecting the viability of this major office development project. The process of feasibility analysis adopted involves site analysis, market analysis and financial analysis of the proposed project. Although the site and market analysis show that it is viable to carry out the project, the feasibility analysis leads to an opposite conclusion. The findings are that a considerable proportion of project cost is represented by land cost and that the high total cost of the project probably render it not economically feasible at this time in view of the uncertainty of the property market.